Martoma Wins Prison Reprieve

Nov 5 2014 | 11:12am ET

Convicted insider-trader Mathew Martoma may get to spend Thanksgiving at home, after all.

A federal appeals court in New York has delayed the former SAC Capital Advisors portfolio manager’s prison surrender date, which had been set for Monday. Martoma will be free until at least next Wednesday, when the U.S. Second Circuit Court of Appeals will hear arguments on his bid to remain free on bail pending his appeal, and probably substantially longer, as the court considers his case.

Martoma was convicted of fraud in February and sentenced to nine years in prison. Last month, U.S. District Judge Paul Gardephe refused to grant Martoma bail pending appeal, calling the evidence against him “overwhelming.”

After Gardephe’s rejection, Martoma hired prominent attorney Paul Clement to make his case to the Second Circuit.

Prosecutors called Martoma’s the “most lucrative” insider-trading scheme in history, one which allegedly earned or saved SAC some $276 million. Martoma was found to have traded on confidential drug-trial information affecting two pharmaceutical companies.

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